NFL-Twitter alliance tops execs’ list of media stories to watch

Twitter’s relatively small NFL deal — it will pay $10 million to stream 10 “Thursday Night Football” games this fall — has created a lot of interest in the sports and media communities. I asked a number of sports and media executives to identify the media story they will follow most closely this fall. Four cited the NFL’s social media strategy, which includes its Twitter deal. Two others said they would have mentioned the Twitter/NFL deal but didn’t because they felt certain the others would.

Here are their responses:

The NFL and Twitter

“I am curious to see if Twitter’s continued push into live sporting events resonates with their users, particularly games from the NFL, or if the strategy will be a total bust. If successful, what are the implications for the incumbent aggregators of sports rights? Will viewership be affected? Will advertisers redirect some of their budgets? Will major platforms like Facebook or Google be emboldened to seriously bid for sports rights in the future? Will there be more pressure on existing business models? I expect a lively debate this fall.”

“The biggest story for me will be the NFL on Twitter, no doubt. Twitter is already a platform where fans are engaging in large numbers during NFL games. Will engagement be greater when games are streamed via Twitter vs. linear television? How many of Twitter’s 800 million users worldwide, including 66 million in the U.S., will watch in terms relative to U.S. television measurement standards. What will the domestic audience be vs. international? I expect that actual viewership via Twitter will pale compared to that generated by CBS, NBC and NFL Network, but the experiment shows another step in the evolution of the NFL’s media distribution strategy, which will determine how games and content will be delivered to fans in the 2020s. As far as that goes, follow the money.”

Photo by: GETTY IMAGES

“I will be looking at the balance the NFL will strike between traditional outlets (broadcast) and newer outlets (OTT streaming video, social media) for its content. As the NFL continues to explore newer outlets, will it do so in partnership with its traditional broadcast partners, or will it do so on its own? To what extent will the NFL grant its traditional broadcast partners additional rights to exploit newer outlets? How will these decisions affect broadcast rights fees? How will the NFL Network fit into this puzzle? How bodacious will the NFL be when developing new content for newer outlets?”

“The media story I will be following most closely this fall will be Twitter’s live OTT digital stream of 10 NFL ‘Thursday Night Football’ games. The NFL got a snapshot of the opportunity when it worked with Yahoo to provide a global live stream of a regular-season game last season, without requiring authentication. Along with the pregame Periscope broadcasts, this new offering will give the NFL additional insight into how fans choose to consume their sports and entertainment content. It will show how certain demographics actively engage with properties, insights not only of value to the league, but its corporate partners looking for new and innovative ways to activate.”

Hulu’s Offering

“One of the most interesting new developments in media is the development of Hulu’s new virtual MVPD. Backed by 21st Century Fox, Disney, NBCUniversal and Time Warner, Hulu will launch it in early 2017. The market is interested to see which networks get included in the product, which is billed as an essential bundle of channels and not simple a ‘skinny’ bundle. We are interested to see if Hulu’s owners include all of their own sports networks. While it is logical to assume ESPN and FS1 are staples, what about FS2, SEC Network, an unimportant RSN or the Golf Channel, which are relatively expensive given their reach and ratings? Another unknown will be Hulu’s pricing. Will it be priced at a steep discount to the current MVPD offerings or will the owners look to a nondisruptive price point? Will other competitors enter the business? What does Amazon, Google and Apple do with video bundles?”

Doug Perlman’s watching virtual and augmented reality development in live sports. Photo by: JUDY PERCIVAL

Virtual Reality

“One story that we’re continuing to follow is the evolution of virtual reality and particularly how VR fits into the live game experience. At this point, most sports properties and media companies have tested different applications of the technology and we believe it will now shift from a novelty to more of a business as distribution platforms are established. As more headsets are on the market and the holiday season approaches, it will be interesting to see how consumer adoption ramps up and business models evolve. On a related note, it will be fun to watch for new augmented reality offerings that are likely to emerge in sports given the incredible success of Pokémon Go.”

Security

“The single most common continuing story will be security and its effects on sport. No one knows whether Rio will be a terrorist target, but the threat has tested resources. We already experienced Munich, the Atlanta park bombing, a stabbing in Beijing, and a lots of history. In general, when one thinks of the billions of people who congregate at sporting events, the number of incidents have been rare. The cost of security will continue to rise. Entrance to events will look more and more like airport security. Will the Paris Olympic 2024 bid be affected by recent incidents? Will cities reject major events? Ticket sales? Even player security is a growing concern. There’s lots to think about.”

Player Safety

“When we have people like Corey Robinson quitting Notre Dame (yes, he’s the son of NBA Hall of Famer, David) due to ‘multiple concussions,’ and every week we hear of another young NFL player leaving in his prime, then financial compensation isn’t enough. Last year, I did a story for CBS on Rashard Mendenhall, who left the Steelers at 26 after too many concussions to try and become a writer. Who hasn’t seen Jim McMahon, and other retired players, talk about their struggles? There is some good news. The NFL’s top health and safety officer, Jeff Miller, finally acknowledged the link between head trauma and CTE, and the league made further commitments to protect the players, now instituting a ‘Concussion Protocol.’ There will be fines, up to $150,000 for the first offense, if these aren’t followed. That awareness should trickle down to the young players — rule changes, better coaching and stronger technology. Brain trauma isn’t new. In the 1920s, boxers called it ‘dementia pugilistica’ or ‘punch drunk.’ But doing something about it is. Yes, football is still risky. Yes, it’s still violent. But now our eyes and ears and minds are open.”

John Ourand can be reached at jourand@sportsbusinessjournal.com. Follow him on Twitter @Ourand_SBJ.